Low Interest on Savings

pdb939

What action should savers take when the banks etc do not provide adequate returns on their deposits?

chris_m

Move to others.

McKneff

I agree with chris_m

Do your research, look for better interest rates.

lisyloo

You could also consider other investments if appropriate like
Equities
Gold
NS&I index linked certificates

This obviously depends on whether you can tie up the money and your attitude to risk.
Generally there is a link between risk and potential returns.
If you want completely safe savings then you cannot expect dazzling returns.

Personally I go for a mix.
This provdes some access and also protection from one asset class/investment going wrong.

PasturesNew

Perhaps we need to organise a national "remove your cash for a month" strike.

vaporate

PasturesNew wrote: »

Perhaps we need to organise a national "remove your cash for a month" strike.

Organise a national 'bank run' day lmao. :rotfl:

System

I've just had my statement from Castle Money and the interest rate is 0.75%

I really need to move it, and will do some research into better accounts but it is a shame - this account isn't that old as far as I'm aware..

OneADay

PasturesNew wrote: »

Perhaps we need to organise a national "remove your cash for a month" strike.

I am working on that theory - moved money away from government banks and mostly now going to foreign owned banks operating under UK license and keep peanuts in the current accounts. Its the only thing that hurts them

Bullfighter

OneADay wrote: »

I am working on that theory - moved money away from government banks and mostly now going to foreign owned banks operating under UK license and keep peanuts in the current accounts. Its the only thing that hurts them

That didn't work out very well for IceSave customers.

OneADay

Bullfighter wrote: »

That didn't work out very well for IceSave customers.

I am covering my back - sticking to 50k limit after ensuring the said organisations are fully covered by FSCS.

OneADay

JamesU wrote: »

Perhaps the government should set up a new bank, maybe distributed through Northern Rock for example. Rate of interest set at BoE + X% and/or linked to inflation with or without tax free interest as an incentive etc. Options endless. Money would fly into the government coffers here in the UK, a good thing, and customers happy with returns and benefits. The banks would need to become more competitive. How? presumably doing what they are supposed to do, borrow money at one rate and lending it at another to make a business out of it. Proper lending would start again, good for the economy. If they cannot do this, so be it, they can then close down just like any other business. Government benefits, customers benefit, banks become banks again. Very simplistic view and probably completely flawed reasoning, but I like it anyway.:)

JamesU

Rather not touch Northern Rock or any bank set up by the government (do we have a government? )

I find it ironic when public purse needs money, the limits on tax free savings are increased (i.e. ISA allowances). At some point you can affectively pay no interest through bank savings.

I reckon a bank for "savers" only could be good - you put your money in, the bank loans to regular banks at extortionate rates (and does no other business) ... wishful thinking .... but really its at that point where you ask the question "Why give the banks any of your money to keep for 1,2 or x number of years with peanut returns?"